Need to Calculate Lyft Fees for 1099 Tax Deduction? Use Sherpa!
So last week, Lyft finally posted drivers 1099 online. They broke it down into two categories, ride earnings in 1099-K or 1099-MISC for any kind of referral bonus. You can go check out your yearly stats along with the 1099 through your driver portal or this link:
On this page, you’ll see Gross Ride Earnings and Non-ride Earnings. In the Gross Ride earnings, Lyft has included the commission we pay to Lyft as that is part of the IRS rules of 1099. When you go and file your taxes, you need to report your full Lyft income and then deduct the Lyft fee manually. However, at this time, Lyft doesn’t include how much we paid them in commission. You also can’t just take 20% from your total ride earnings as midway through the year, they slashed commissions so there is no easily reliable way to calculate your commission, unless you go back and manually add up all the Lyft fees you paid in each of your weekly summaries.
Here is where Sherpa can really help Lyft Drivers. They can automatically add the fees for you:
What is Sherpa?
Sherpa is an online service that helps aggregate self employment income and helps people analyze and display the data. This review focuses on the service as used to help collect and analyze rideshare income, but it can help analyze airbnb, and a few other self employment income streams. Currently, Sherpa helps drivers analyze and display rideshare income from Lyft, Uber, and Sidecar.
How Can Sherpa Help Me?
I was talking to Ryder a few days ago about how their service could really help drivers file their taxes by providing what the Lyft Fees are so we can add that to our deduction so we wouldn’t have to pay taxes on income we never received because of the commission. He managed to put that feature into the driver analytics today!
Sherpa already parsed your Lyft income, so they can easily calculate the commission you paid during the year. You can also see your total earnings next to that number, so you can compare that to your 1099-K. This can make your life a lot easier.
Here is what it looks like:
Make sure to check off the dropbox for the year (not shown here). Pick 2014 to get all the fees you paid to Lyft in 2014. You can also see the fees paid to Uber but Uber reports that in your tax summary anyway. The earnings listed in Sherpa is after commission so when you add up commission with earnings, you should see close to the value reported on your 1099-k.
How do I set up this integration?
So once you sign up for Sherpa (see below for a link), you will be asked to integrate with Lyft. What this entails is a connection to your email account. Then Sherpa will go and read your past Lyft weekly statements and record all of the trips and weekly income data. Then it’ll add it up and display it like the view on top to give you your total earnings (minus commission) and commission.
What do I report on my taxes?
This is how I recommend you list it on your taxes. You first list the summary from your Yearly Stats page on Lyft. This income is including the commission. Then in your deductions, list your commission as a deduction. It should be listed as a fee of some sort.
Where do I see this information in Sherpa:
You can see this by going to your dashboard, and then clicking on Advanced Analytics, and then choose Lyft where you see “Choose Platform” option or you can use this link: https://www.sherpashare.com/driver/analysis/
I have two videos showing you how you can file your rideshare taxes with Turbotax in this post: How to File your Rideshare Income with TurboTax
How Do I Sign up?
You can sign up using my referral code: Sign up for Sherpa!
This makes it so easy for drivers, it is definitely worth checking out! The service is free for anyone who signs up so why not try it out?Have more questions about Uber or Lyft? Head on over to our Rideshare Driver Training Course! Driver Promotions